Overview
- The MTA and New York filed in the U.S. Court of Federal Claims, alleging USDOT breached a grant agreement by withholding $58.6–$60 million since last fall.
- The agency warns the funding pause jeopardizes imminent awards, including excavation work for new stations at 106th Street and 125th Street, risking delays, higher costs and project cash diversions.
- Federal officials cite a review of the MTA’s compliance with Disadvantaged Business Enterprise and DEI-related requirements; USDOT says it is considering all legal avenues to ensure responsible spending.
- Phase 2 would extend the Q line from 96th Street to 125th Street with three new stations, carries an estimated $7–$7.7 billion price tag, and anticipates about $3.4 billion in federal support under the 2021 infrastructure law.
- The plaintiffs seek expedited partial summary judgment and consequential damages, pointing to recent court orders restoring Gateway tunnel funds as a favorable precedent.